The Securities and Commodities Authority (SCA), the regulatory body in the UAE responsible for overseeing and regulating financial markets, along with the Dubai Financial Services Authority (DFSA), an independent regulatory authority for the Dubai International Financial Centre (DIFC), has announced the signing of a new memorandum of understanding (MoU) aimed at enhancing the supervision of auditors and strengthening regulatory collaboration between the two entities. This memorandum will bolster regulatory oversight in auditing processes, covering various areas such as the registration of auditors for companies listed in regulated financial markets and ensuring compliance through inspections to enhance the quality of financial reporting, maintain market integrity, and boost investor confidence in the UAE’s financial sector.
According to the MoU, both the SCA and the DFSA will collaborate in supervising and overseeing auditing operations, sharing expertise, and establishing robust frameworks for regulation of auditors within their jurisdictions. This partnership coincides with the steady growth momentum in the financial sector and is designed to address the increasing complexities within financial markets.
Waleed Al Awadhi, CEO of the SCA, stated: “The signing of this MoU with the DFSA marks a significant milestone in enhancing strategic collaboration and reinforcing transparency principles in auditing oversight. Amid the rapid growth of the financial sector in the country, strengthening and developing regulatory infrastructures and elevating best practices in auditing is a fundamental pillar that we need to focus on. This agreement will support our collective efforts to safeguard the integrity of the financial system and bolster investor confidence in the UAE. Our collaboration will elevate auditing standards across all financial securities firms operating in the UAE and the DIFC.”
Mark Steward, CEO of the DFSA, commented: “The MoU signed today opens a new chapter of close cooperation between the DFSA and the SCA; it will significantly contribute to raising auditing standards across all financial securities firms in the UAE, the DIFC, and capital markets. We at the authority look forward to working closely and coordinating efforts with our colleagues at the SCA.”
The newly established MoU is expected to create a more streamlined and effective regulatory environment, where both parties will exchange knowledge and resources to enhance the enforcement of financial reporting standards and improve auditing efficiency. Both organizations have expressed their firm commitment to fostering a robust, transparent, and sustainable financial market environment in the UAE.